Texas Finance Code - Section 59.011. Lender Liability For Construction
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Texas Lawyer > Finance Code > Texas Finance Code - Section 59.011. Lender Liability For Construction
§ 59.011. LENDER LIABILITY FOR CONSTRUCTION. (a) For
purposes of Chapter 27, Property Code, and Title 16, Property Code,
a federally insured financial institution regulated under this code
is not a builder.
(b) A lender regulated by this code that forecloses on or
otherwise acquires a home through the foreclosure process or other
legal means when the loan is in default is not liable to a
subsequent purchaser for any construction defects of which the
lender had no knowledge that were created prior to the acquisition
of the home by the lender.
(c) A builder hired by a lender to complete the construction
of a foreclosed home is not liable for any construction defects of
which the builder had no knowledge that existed prior to the
acquisition of the home by the lender, but the builder is subject to
Chapter 27, Property Code, and Title 16, Property Code, for work
performed for the lender subsequent to the acquisition of the home
by the lender.
Added by Acts 2005, 79th Leg., ch. 1018, § 5.01, eff. Sept. 1,
2005.
Section: 59.004 59.005 59.006 59.007 59.008 59.009 59.010 59.011 59.101 59.102 59.103 59.104 59.105 59.106 59.107
Last modified: August 10, 2007
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